Instead they will be able to withdraw as much of their nest egg as they choose, subject to their marginal rate of income tax.

The firm indicated that it is developing a number of new products to launch by April next year.

This includes a tax free Isa, into which savers can invest in its giant with-profits fund.

The insurer said it is also working on new income drawdown pensions which will provide more flexibility for savers.

Sales of bulk annuities - where the Pru takes over the running of company pensions – also increased sharply.

A series of firms, including Legal & General and Standard Life, have boosted sales of bulk annuities to offset a fall in sales of individual annuity sales.

Overall the Pru enjoyed a strong first half, particularly in its key market of Asia, and in the US under its Jackson life arm.

Total profits jumped 17 per cent to £1.5billion to £525million in Asia, despite political uncertainty in indonesia and Thailand, and 28 per cent to £686million in the US.

The Pru’s home market the UK lagged, with profits up 10 per cent to £374million.

Thiam said it would stick to its plans to grow ‘aggressively’ in Asian markets, despite ‘challenging conditions’.

He said: “In the first half of this year, some of our markets experienced headwinds as a result of political and economic events such as the uncertainty over the outcome of presidential elections in Indonesia or the military takeover in Thailand.’

The botched £21billion takeover of Asian rival AIA in 2012 – which culiminated in a fine for the Pru and a humiliating slap on the wrists for Thiam by the City watchdog – still rankles with the Ivorian boss.

‘We have never accepted that AIA was a change of strategy. Our strategy was always to grow fast and aggressively in Asia.’

He added: ‘My only apology is that we did not succeed. It was a great opportunity.’

The Pru hiked its interim dividend by 15 per cent to 11.19p per share.

Prudential was the second best performing FTSE 100 stock in mid afternoon trading, up 1.4 per cent or 18.5p to1,357.5p.